DINKAR MAHESHWAR,KOLKATA vs. A.C.I.T.,CIRCLE-30, KOLKATA

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ITA 291/KOL/2020Status: DisposedITAT Kolkata12 May 2021AY 2013-143 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the disallowance had no revenue implication for the current year as it was adjusted against brought forward losses. The assessee then requested to withdraw the appeal.

What were the facts?

The assessee claimed dividend income as exempt but did not offer any disallowance under Section 14A. The Assessing Officer disallowed Rs. 2,62,708/- under Section 14A read with Rule 8D.

What were the issues?

The primary issue was the disallowance of expenses related to exempt income. However, the appeal was dismissed as withdrawn due to lack of revenue implication.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘A(SMC

Before: Shri P.M. Jagtap, Vice-

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-8, Kolkata dated 02.12.2019 and the solitary issue involved therein relates to the disallowance of Rs.2,62,708/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) under section 14A of the Income Tax Act, 1961 read with Rule 8D of the Income Tax Rules, 1962.

2.

The assessee in the present case is an individual, who filed his return of income for the year under consideration on 28.09.2013 declaring total income of Rs.15,92,020/-, which constituted his salary. In the said return, dividend income received during the year on shares was claimed to be exempt by the assessee. However, no disallowance under section 14A on account of expenses incurred in relation to the said exempt income was offered by the assessee. The Assessing Officer, therefore, invoked Rule 8D and worked out such expenditure incurred by the assessee in relation to the exempt income at Rs.2,62,708/-. Accordingly disallowance of Rs.2,62,708/- was made by him under section 14A read with Rule 8D in the assessment completed under section 143(3) of the Act vide an order dated 22.03.2016. On appeal, the ld. CIT(Appeals) confirmed the disallowance made by the Assessing Officer. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

3.

I have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that the income of the assessee for the year under consideration was assessed by the Assessing Officer vide an order passed under section 143(3) at the same figure of Rs,15,92,020/- as declared by the assessee in his return of income and the disallowance of Rs.2,62,708/- made under section 14A read with Rule 8D was adjusted by him against the losses of Rs.50,41,633/- brought forward from the earlier years. There was thus no revenue implication of the disallowance made under section 14A read with Rule 8D so far as the year under consideration is concerned and when this position is pointed out to the assessee, who has attended the hearing personally, he has submitted that he is not interested to prosecute this appeal, which may be dismissed as withdrawn. The ld. D.R. has also not raised any objection in this regard. The request of the assessee is acceded to and this appeal of the assessee is dismissed as withdrawn.

4.

In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on May 12, 2021. Sd/- (P.M. Jagtap) Vice-President Kolkata, the 12th day of May, 2021 Copies to : (1) Shri Dinkar Maheshwari, Tivoli Court, 1A, Ballygunge Circular Road, Kolkata-700019

(2) Assistant Commissioner of Income Tax, Circle-30, Kolkata, Aayakar Bhawan Dakshin, 2. Gariahat Road, Kolkata-700068

(3) Commissioner of Income Tax (Appeals)-8, Kolkata, (4) Commissioner of Income Tax , (5) The Departmental Representative

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